Car Rental Global Market Report 2024

The car rental market is expected to see strong growth in the next few years. It will grow to $146.7 billion in 2028 at a compound annual growth rate (CAGR) of 7.4%. Anticipated growth in the forecast period is expected to be driven by several key factors. These include a shift in consumer preferences towards sustainable options, the integration of electric and environmentally friendly vehicles within rental fleets, evolving work patterns such as remote work leading to changes in transportation needs, and the gradual recovery of tourism following the pandemic. Additionally, the emergence of subscription-based models in the car rental industry is set to contribute significantly to this growth trajectory.

The substantial growth witnessed in the tourism industry is projected to act as a catalyst for the expansion of the car rental market. Within the tourism sector, car rentals play a pivotal role in facilitating affordable and secure travel experiences, ensuring passengers enjoy a comfortable journey. As reported by the World Tourism Organization (UNWTO) in September 2022, the tourism sector exhibited remarkable recovery, with nearly 60% rebounding to pre-pandemic levels. International tourist numbers surged to 474 million from January to July 2022, witnessing a stark increase from 175 million during the corresponding months in 2021. This resurgence, reaching 57% of pre-pandemic levels, signifies an encouraging revival in international tourism, driving the growth of the car rental market.

The burgeoning popularity of on-demand transportation services is anticipated to propel the growth trajectory of the car rental market. On-demand transportation services, characterized by their availability upon user request via digital platforms or mobile apps, have revolutionized the car rental industry. These services offer enhanced accessibility, flexibility, and convenience, efficiently catering to diverse travel needs. Notably, Winnesota's report in 2023 revealed that 72% of Americans have utilized on-demand services, thereby augmenting the demand for car rentals.

Technological advancements represent a significant trend gaining traction within the car rental sector. Companies operating in this domain are integrating new technologies to fortify their market standing. For example, in October 2022, The Growr Inc., a UK-based self-driving car rental entity, introduced 'AI Smart Drive,' a groundbreaking addition to the car rental landscape. AI Smart Drive marks a notable innovation, seamlessly integrating self-driving vehicles into existing rental services. These autonomous vehicles, equipped with a suite of sensors, navigate their surroundings with minimal human intervention, aiming to offer fully autonomous automobiles to customers.

Prominent entities within the car rental market are devising innovative service platforms to augment market revenues. The entry of Drivepadi heralds a new era in car rental services, leveraging technology and customer-centric strategies to address the evolving needs of modern consumers. For instance, in June 2023, Drivepadi unveiled its pioneering car rental platform in Lagos, Nigeria. Engineered to transform the accessibility and utilization of car rental services, this platform epitomizes Drivepadi's commitment to delivering a cutting-edge and user-friendly experience. By incorporating innovative features and a peer-to-peer sharing model, this platform aims to offer increased convenience, flexibility, and choices to individuals seeking rental car services.

In September 2022, Green Motion International, a UK-headquartered car rental enterprise, successfully acquired U-Save Car & Truck Rental LLC for an undisclosed sum. This strategic acquisition is geared towards leveraging growth prospects by synergizing the service portfolios of both entities. The integration of their offerings aims to expand Green Motion International's global footprint while fortifying the brand positioning of U-Save Car & Truck Rental LLC. Renowned for offering discounted car and truck rental services, U-Save Car & Truck Rental LLC's collaboration with Green Motion International is anticipated to foster mutual growth and enhance their competitive edge in the car rental industry.

Major companies operating in the car rental market report are Enterprise Rent-A-Car LLC, The Hertz Corporation,SIXT SE, Europcar Rental Company, Avis Budget Group Inc., Uber Technologies Inc., Localiza Rent -a-Car SA, National Car Rentals Pte. Ltd., Ace Rent-A-Car Pvt. Ltd., Eco Rent A Car LLC, Carzonrent India Pvt. Ltd., Renault Eurodrive Inc., Alamo Rent A Car Inc., Budget Rent a Car System Inc., Thrifty Car Rental, Dollar Rent A Car, Turo Inc., Getaround Inc., Zipcar Inc., Car2Go GmbH, Maven Mobility LLC, GIG Mobility LLC, RelayGo Inc., Communauto Inc., AUTOshare Inc., Modo Co-operative, Silvercar Inc., Fox Rent a Car, Green Motion, Discovery Rentals.

North America was the largest region in the car rental market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global car rental market report during the forecast period. The regions covered in the car rental market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the car rental market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain. The car rental market includes revenues earned by entities by providing services, such as automated check-in and checkout, online cancellation, vehicle information and listing, and more. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The fleet in car rental services includes various vehicle types such as luxury cars, executive cars, economy cars, SUVs, and MUVs, available for booking both online and offline. Luxury cars denote high-end vehicles renowned for their superior comfort, performance, and features, exceeding those found in standard or economy cars. These vehicles cater to diverse applications such as local commuting, airport transportation, out-of-town journeys, and more, serving a range of end users including both self-driven and chauffeur-driven preferences.The car rental market research report provides car rental market statistics, including car rental industry global market size, regional shares, competitors with a car rental market share, detailed car rental market segments, market trends and opportunities, and any further data you may need to thrive in the car rental industry. This car rental market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The car rental market has grown strongly in recent years. It will grow from $102.29 billion in 2023 to $110.4 billion in 2024 at a compound annual growth rate (CAGR) of 7.9%. The growth observed in the historical period can be credited to several factors. These include the upsurge in international tourism, a steady increase in business-related travel, the ongoing trend of urbanization leading to heightened mobility needs, economic expansion coupled with rising disposable income, the widespread adoption and expansion of online booking platforms, as well as strategic partnerships and collaborations within the car rental industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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